SUBSEQUENT EVENTS

9 Months Ended

Mar. 31, 2018

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

(15) SUBSEQUENT EVENTS

McLean Data Center Acquisition

        On April 4, 2018, the Company acquired a data center in McLean, Virginia. The acquisition was considered an asset purchase for tax purposes and a business combination for accounting purposes. The Company assumed an operating lease obligation and certain assets, such as cash, equipment and customer contracts. Due to the timing of the transaction, the initial accounting for this acquisition, including the measurement of assets acquired, liabilities assumed and goodwill, has not yet been determined and is pending detailed analyses of the facts and circumstances that existed as of the April 4, 2018 acquisition date.

Neutral Path Communications

On April 17, 2018, the Company acquired substantially all of the assets of Neutral Path Communications and Near North Partners for $31.5 million.The purchase price is subject to net working capital and other customary adjustments, as well as a contingent payment based on sales performance through June 30, 2018. The acquisition was considered an asset purchase for tax purposes and a business combination for accounting purposes. Neutral Path is a long haul infrastructure provider, providing access to a fiber network in the Midwest. The transaction will add owned plus additional leased route miles to the Company’s extensive North American network, including a unique, high-count fiber route from Minneapolis to Omaha. The all-cash transaction was funded with cash on hand. Due to the timing of the transaction, the initial accounting for this acquisition, including the measurement of assets acquired, liabilities assumed and goodwill, has not yet been determined and is pending detailed analyses of the facts and circumstances that existed as of the April 17, 2018 acquisition date.